Russia Pursues BRICS Agreement to Conduct 90 Percent of Trade Using National Currencies

Russia is pushing for a BRICS agreement to conduct nearly 90% of member-state trade in local currencies, a move it frames as pragmatism rather than anti-dollar strategy. The proposal faces coordination challenges as key member nations remain divided on currency and geopolitical matters ahead of the September 2026 summit in New Delhi.

• Russia seeks BRICS consensus to settle nearly 90% of trade in local currencies at the upcoming summit.
• Kremlin spokesperson Dmitry Peskov stated the initiative is not de-dollarisation but pursuit of national interests.
• The September 2026 New Delhi summit may include discussion of linking member currencies to a CBDC network.

• 90% Target share of BRICS trade to be settled in local currencies under Russian proposal
• Sept 12-13, 2026 Dates of the 18th BRICS summit in New Delhi, India

Russia is making a coordinated push for BRICS member nations to agree on conducting nearly 90% of mutual trade in local currencies, according to Kremlin statements ahead of the group’s September 2026 summit in New Delhi. The proposal represents a significant structural shift in how the bloc’s six core members and newer participants would settle cross-border transactions. Kremlin spokesperson Dmitry Peskov framed the initiative as a response to external constraints rather than ideological opposition to the dollar.

Peskov frames Local currency shift as practical necessity, not anti-dollar policy

Peskov told Indian journalists that using national currencies reflects what serves member states’ material interests rather than a deliberate de-dollarisation strategy. He emphasized that BRICS must prioritize deepening cooperation across political, financial, and technological domains while maintaining local currencies as a core principle. The spokesperson also drew a direct line between the currency proposal and Western pressure, stating plainly: “If they don’t let us use their money, we use our own money.”

The framing carries particular weight given Russia’s experience with international financial sanctions following its 2022 invasion of Ukraine. Moscow has faced severe restrictions on dollar transactions and access to Western banking systems, creating practical incentives to develop alternative payment infrastructure. For Russia, the shift toward local currencies represents both necessity and opportunity to reduce vulnerability to future sanctions.

India, Brazil, and South Africa have expressed varying degrees of interest in reducing dollar dependence, though their motivations differ from Russia’s immediate constraints. These nations view local currency trading as a way to strengthen intra-bloc economic ties, reduce transaction costs, and diminish exposure to currency fluctuations. However, enthusiasm for such arrangements remains measured among some members concerned about capital controls and currency convertibility risks.

Use of national currencies is not a de-dollarisation policy. We’re simply doing what is better for national interests.

Dmitry Peskov, Kremlin spokesperson

Peskov warned that BRICS must resist external political pressure and avoid allowing outside actors to dictate its internal arrangements.

Iran-UAE tensions complicate consensus on currency agreement

The push for local currency settlement faces a significant obstacle: deep disagreements between member nations Iran and the United Arab Emirates. Peskov acknowledged these tensions explicitly, noting that Russia understands the two countries hold fundamentally incompatible positions on key matters. He indicated that Moscow is prepared to mediate and help normalize relations between the two allies.

The Iran-UAE split reflects broader regional tensions involving proxy conflicts, sectarian divides, and competing spheres of influence throughout the Middle East and Indian Ocean region. Iran and the UAE have clashed over maritime boundaries, support for rival factions in Yemen and Iraq, and broader geopolitical alignment with different global powers. These disputes complicate efforts to establish unified BRICS financial frameworks that require genuine trust between all participating nations.

Russia’s ability to deliver BRICS consensus depends partly on UAE buy-in, making the Iran-UAE split a potential dealbreaker for the 90% target.

New Delhi summit May link Local Currencies to shared digital payment system

The September 2026 summit in New Delhi is expected to examine the possibility of connecting member-state currencies to a central bank digital currency (CBDC) network. The Reserve Bank of India proposed this concept in January 2025, viewing it as a mechanism to create payment infrastructure independent of Western financial systems. Linking local currencies through a CBDC framework could enable BRICS to function as a more self-contained economic bloc.

A BRICS CBDC network would allow seamless settlement of trade in member currencies without requiring conversion through dollar-denominated intermediaries. Such a system could process cross-border transactions more rapidly and transparently than traditional correspondent banking arrangements. Central banks within the bloc have already begun exploring technical specifications for interoperable digital currency platforms, though significant standardization challenges remain.

The broader context involves growing competition between alternative payment systems as countries seek to reduce reliance on Swift and other Western-dominated financial infrastructure. The European Union, China, and Russia have each pursued initiatives to create parallel payment mechanisms. BRICS represents the most ambitious attempt by a diverse group of major emerging economies to establish a genuinely multilateral alternative to dollar-centric global finance.

The outcome of the New Delhi summit will determine whether BRICS can move beyond aspirational statements on de-dollarisation to concrete operational agreements. Iran and the UAE must resolve enough of their differences to allow consensus on the local currency framework, and central banks will need to finalize technical specifications for any CBDC integration before September 2026. Success would signal a meaningful shift in global financial architecture, while failure could reinforce skepticism about BRICS’ ability to execute ambitious economic initiatives.

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